By the middle of Wednesday's GMT trading, it was expected that the rate would once again test the monthly R2 simple pivot point at 1.1385. This scenario was described as possible on Tuesday.
Economic Calendar Analysis
The most action on the economic calendars will be occurring at 18:00 GMT. At the time the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a 4 EUR/USD pip move, which is below normal volatility.
EUR/USD hourly chart's review
During morning hours of Wednesday's European trading, the rate was slowly ascending to the resistance of the monthly R2 simple pivot point at 1.1385.In general, as the pair reaches this level, it could trade sideways, as the markets expect the Federal Reserve announcements. Afterwards, depending on the information announced there are two possible scenarios.
In one scenario, the pair could pass the monthly R2 and reach for the weekly pivot point at 1.1417. On the other hand, the rate would bounce off the pivot point and decline to the support of the 55 and 100-hour simple moving averages near the 1.1320 level.
Hourly Chart
On the daily candle chart, the rate appeared to be declining in the aftermath of a too sharp surge, which made the pair overbought. However, the bounce off on Tuesday revealed that the pair was consolidating by trading sideways between pivot points.
One of the indicators of the rate being overbought is the fact that the daily simple moving averages have been left near the 1.1000 mark.
Daily chart
Read More: Technical Analysis
Traders stick to short positions
On Tuesday, on the Swiss Foreign Exchange 72% of all EUR/USD open position volume was in short positions.
By the middle of Wednesday's trading, the sentiment was 70% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were neutral, as 51% were set to sell.
The orders were 55% bullish on Tuesday.